Telecommunications services to yield a US$4.7 billion in annual revenues in 2009, says IDC

June 13, 2005

Manila, June 13, 2005 – The telecommunications industry in the Philippines enjoyed a strong performance in 2004, registering US$2.7 billion in end-user revenues or 14% higher from the previous year. This tremendous development was buoyed by the healthy growth from the wireless services sector, recording a total of 69% revenue contribution in the telecommunications market from 65% in 2003.

According to IDC, the voice sector remains to be the largest contributor, with 55% claim of total operator revenues in 2004, although the data services sector is aggressively inching its way up, with total market share growing to 45% in 2004 from 38% the previous year.

During the year, the fixed line services market showed a 2% increase in revenues, after a 7% drop in 2003. The wireless services market, meanwhile, grew 21% in revenues year-on-year. At the end of 2004, the country's total wireless subscribers in the Philippines registered at 32.7 million, a noteworthy 47% increase from 22.3 million the previous year, and majority of these subscribers use prepaid as mode of payment.

"Aggressive competitive dynamics among players to tap maturing demand for telecommunications services will be a key driver to both fixed line and wireless services market growth in the Philippines moving forward," says Karen V. Rondon, senior analyst, Telecommunications Research, IDC Philippines.

Looking ahead, IDC forecasts that annual revenues from telecommunication services in the Philippines will reach US$4.7 billion in 2009 or a 12% compound annual growth rate (CAGR) in the next five years. To maintain the market's healthy growth, IDC advises service providers to focus on offering value-for-money service, which will mean ensuring that they strive to offer high-level quality of services at affordable pricing.

IDC's recent study, "The Philippines Telecommunications Services 2005-2009 Forecast" examines the overall telecommunications services market, including fixed line and wireless services. It also provides market sizing and future direction of the Philippine telecommunications market and profiles of the leading broadband and dial-up service providers in the country.

Contact

Chong Chee Kian
Events & Marketing Executive
Tel: +603-2169-7521
Fax : +603-2163-5098
Email:ckchong@idc.com